Previously, Train 2 had already been placed into care and maintenance in 2024, and expansions for Trains 3 and 4 were ceased.

Management reiterated that the action should boost EBITDA starting in Q2 2026 and will not affect 2026 sales volumes, with customer demand satisfied via other production channels, including China.

Kemerton processes spodumene from Greenbushes, with Albemarle holding a 49% stake in Talison Lithium and retaining half of the mine’s offtake through a joint venture.

The idling is expected to be accretive to adjusted EBITDA from the second quarter of 2026, with no impact to projected 2026 volumes as demand for lithium hydroxide will be met through other production channels.

Executives stressed the company’s plan to meet customer demand for lithium hydroxide through alternative channels while idling Kemerton.

CEO Kent Masters described idling as a difficult but necessary step to improve financial flexibility and preserve options amid ongoing market volatility and cost pressures.

The company has shut down the Kemerton plant, placing about 250 workers on notice as the last operating train is idled and the facility moves to care and maintenance.

Despite a rally in lithium hydroxide prices from energy storage demand, Albemarle says price gains aren’t enough to offset challenges in Western hard-rock lithium conversion, so the company is pursuing further cost cuts and productivity improvements.

For the fourth quarter, net sales were $1.428 billion, higher than $1.232 billion a year earlier.

WA’s Chamber of Minerals and Energy said the decision reflects current market competitiveness and the need to balance value capture with downstream processing ambitions in Western Australia.

The move is intended to preserve optionality and enhance financial flexibility in the face of price volatility and costs.

Albemarle will idle Train 1 at the Kemerton lithium hydroxide plant in Western Australia and move it into care and maintenance, following prior steps to place Train 2 into care and maintenance and to halt expansion plans for Trains 3 and 4.